Pre-financing and Guarantee Fund
The Pre-financing & Guarantee Fund (VGF) was set up over 25 years ago, and was an initiative of the Netherlands Board of Tourism & Conventions (NBTC), the Ministry of Economic Affairs, and some twenty organisations in the Dutch conference industry.
The Pre-financing & Guarantee Fund (VGF) is intended to give organisers of international, multiple-day conferences in Holland increased financial security. The fund helps conference organisers to cover pre-conference expenses, and other financial risks. It encourages organisers to realise conferences.
The VGF combines two separate schemes; a pre-financing scheme and a guarantee scheme. We offer you the possibility to use these two schemes separately, or to combine the two.
The pre-financing scheme
In the preparatory stages of the conference, the organiser has to deal with various aspects that must be paid for. Examples are the costs for establishing a foundation, a down payment for the accommodation, and expenses incurred for developing marketing tools, such as a brochure, first announcement, or website.
As the registration fees will not be received until later, the organisers may not always be able to fund these initial expenses. The pre-financing scheme of the VGF can help to pay these costs.
Conference organisers may apply to the VGF for an interest-free loan, free of charge; a kind of subsidy scheme for conferences. The loan is capped at € 90,000, with the actual amount depending on the size of the conference and the liquidity forecast.
The guarantee scheme
All conference budgets have expenses and income. A limited risk only is attached to the costs, because conference organisers can benefit from the knowledge, experience and the stable infrastructure of the conference industry.
The income, however, is less solid. Most of the income, apart from possible sponsoring, comes from the registration fees of the attendees. This is exactly where the main risk lies for organisers. If the attendance level falls short of expectations, this yields less income, which will impact the overall conference budget.
In order to minimise this risk, the VGF offers the possibility of a guarantee. This guarantee allows the conference organisation to guarantee that the event will take place, in spite of possible disappointing numbers of attendees. The guarantee is capped at € 90,000, and the actual amount depends on various aspects, such as the size of the conference, the history of the conference, possible sponsoring, and the overall budget. Moreover, the budget must have been drawn up competently.
More information on the possibilities and terms & conditions of the Pre-financing & Guarantee fund can be found on www.vgfholland.nl. To apply for the fund please use the online application form on the website of the VGF.
The VGF cooperates closely with the Netherlands Board of Tourism & Conventions. You can also call us on +31 (0)70 370 57 05